Good varieties are not afraid of poor market, many enterprises speed up commercial breeding.

This spring and summer seed sales season is both the worst time and the best time for seed enterprises and the industry as a whole.

The market is not good, inventory pressure is still the most common difficulties faced by enterprises. Take maize seeds as an example, although the area of hybrid maize seed production has dropped sharply for two consecutive years, and the stock has dropped to 1 billion kg, according to the changing trend of national hybrid maize seed production area and inventory, the change of maize seed inventory lags behind the change of seed production area for about two years. According to this rule, the first quarter of this year coincides with the highest point of seed production area two years ago.

Although the market is not ideal, but from the perspective of the development of the industry, there has been a lot of good news about the seed industry in the first quarter of this year. On March 13, the State Council issued "some opinions on deepening the Reform of system and Mechanism and speeding up the implementation of Innovation-driven Development Strategy". The R & D investment in breeding of seed enterprises was endorsed by policy. Recently, the revised draft of the seed Law was submitted to the National people's Congress for deliberation for the first time. The draft has been comprehensively improved in encouraging independent innovation and cracking down on infringement, which is good for the whole industry, especially for the integrated breeding, breeding and promotion enterprises.

A few days ago, various listed seed enterprises released their annual reports for the first quarter of 2015 one by one. Combined with interviews with some unlisted seed enterprises, generally speaking, the market performance of seed enterprises with outstanding variety advantages in the new sales season is still eye-catching. While speeding up the process of commercial breeding, a variety of enterprises grasp the seed industry and agricultural favorable policies to accelerate the development.

A good variety is not afraid of a bad market

A good variety is the pass of the market. This year, corn seed stocks are still in surplus, and some seed companies even dump them at low prices to get rid of inventory. However, the Denghai seed industry still adheres to the strategy of stable price increment.

In terms of market performance, according to the announcement of the Denghai seed industry, in the first quarter of this year, the company's total operating income was 279 million yuan, down 29.46% from the same period last year; the net profit belonging to shareholders of listed companies was 87.25 million yuan, down 16.74% from the same period last year, and the first quarter performance was generally lower than expected.

In this regard, the industry and securities firms generally believe that the poor performance on the books is mainly due to the careful confirmation of first-quarter revenue. In view of the return problem in the second quarter of last year, in the first quarter of this year, the vanguard of Denghai adopted a conservative return plan.

In fact, Denghai 605, 618, Liangyu series varieties are very eye-catching in the new sales season, and the sales revenue contribution of parent company and Dandong Liangyu is expected to exceed Denghai Pioneer for the first time.

Longping Hi-Tech achieved both sales revenue and profit growth in the first quarter. Although the business of subsidiaries in the extended industrial chain remains in the doldrums, the three core subsidiaries are growing rapidly. Hunan Longping, Anhui Longping and Yahua seed industries have achieved a total income of 417 million yuan, an increase of 16% over the same period last year.

Longping Hi-Tech already has a leading advantage in variety and has been in the forefront of the industry in terms of technical services and marketing. Although the company's "Liangyou 0293" variety was hit by rice blast in Bengbu, Anqing and other six cities last year, a large-scale reduction in production and no harvest occurred. However, the promotion area of this variety is less than 500000 mu, which is not the main variety and has no impact on the performance of the company.

Various enterprises speed up commercial breeding

Since last year, many seed enterprises have seized the opportunity of opening a green channel for variety approval to speed up the process of commercial breeding. According to statistics, 31 enterprises applied for green channel in 2014; this year, 31 enterprises applied for corn varieties alone, with a total of 48 enterprises.

In the first quarter announcement of Tsuen Bank Hi-Tech, the first item of major business review is to "further speed up the construction of green channels." In order to speed up the process of new variety selection and improve the ability of breeding innovation, Tsuen Yin Hi-Tech organized special research and deployment of parent and subsidiary companies to speed up the construction of rice green passageway. further clarify the company's green channel construction objectives, management methods, experimental development and operation mechanism. In the first quarter, Tsuen Yin Hi-Tech achieved an operating income of 89 million yuan, an increase of 8.96% over the same period last year.

Relatively speaking, Longping high-tech and marine seed industry have made faster progress in the construction of green channels. "according to the innovative thinking of 'development generation, reserve generation, R & D generation', the commercial breeding model of Longping high-tech hybrid rice and hybrid maize continues to mature, and the breeding scale continues to expand." In April, at a forum held in Beijing by the seed Administration of the Ministry of Agriculture, this newspaper and the China seed Association, Yang Yuanzhu, vice president of Longping Hi-Tech, told reporters that the annual test scale of Longping's new high-tech rice and maize combinations exceeded 30,000 and 80,000 respectively. Last year, Longping Hi-Tech system participated in 226 regional test varieties at all levels, of which 34 were recommended to participate in the national regional test, 26 of which passed, with a pass rate of 76.5%. It is much higher than the national average.

The variety advantage of Denghai seed industry is already very prominent. Last year, Denghai 618, Denghai 661, Denghai 606 and other varieties achieved high-yield breakthroughs in Shandong, Xinjiang, Henan, Hebei and other places. In order to consolidate the advantage of varieties, six ecological regional trials were set up in the sea seed industry last year, and nearly 100 self-bred varieties were arranged to conduct multi-site trials. "the implementation of the green channel will significantly speed up the commercialization of the company's (landing seed industry) varieties. There are 53 varieties in each category 605amp 335, and more than 10 varieties are expected to be commercialized in the next three years." The securities firm China International Capital Corporation gave the following analysis at the end of the first quarter.

Seize the favorable situation and speed up the development

According to the National Modern crop seed Industry Development Plan of the Ministry of Agriculture (2012-2020), the market share of the top 50 companies in the seed industry will increase to 40 percent this year and to 60 percent by 2020. This means that in the next few years, seed enterprises need to strive to catch up with the "stronger" momentum of development.

You need to be hard to strike iron. In the face of the continuous situation of favorable policies in the industry, several listed seed enterprises take the initiative to choose "penance internal skills".

In the first quarter, Tsuen Yin Hi-Tech set up an Enterprise Management Department, which is specially responsible for the internal operation management of the company and supervising the operating units to achieve the business objectives, with the aim of realizing the equity incentive plan and effectively promoting the business entities to achieve their performance targets.

In order to enhance investor confidence, Zhongnongfa seed Industry issued the shareholder return Plan for the next three years (2015-2017) on April 10. In the next three years, the company will give priority to the profit distribution method of cash dividends. Each year, the profit that can be distributed by the parent company in the form of cash is not less than 10% of the profits realized in that year.

The core management of Longping Tech began to implement the performance commitment agreement last year. According to the agreement, the net profit of the company belonging to the parent company this year is not less than 490 million yuan. If the performance is not up to standard, the core management will compensate in cash. If the excess is completed, the company will reward 5% of the excess to the team in cash. In the first quarter, Longping Hi-Tech realized a net profit of 147 million yuan belonging to shareholders of listed companies, an increase of 6.28% over the same period last year.

With the help of the power of the capital market to become bigger and stronger has become the choice of more and more enterprises. In March, the "New third Board" listing ceremony of Beidahuang Kinfeng seed Industry Co., Ltd. was held in Beijing. So far, 8 seed enterprises have landed on the "New third Board".

Under the background of the rapid development of modern agriculture, many kinds of enterprises have begun to diversify their layout. In the first quarter, Tsuen Yin Hi-Tech and Anhui Zhonghe Goldman Sachs Market Investment Co., Ltd. jointly established Anhui Tsuen Yin Goldman Sachs Investment Co., Ltd. mainly engaged in agricultural products, agricultural by-products, crop seeds and other agricultural products wholesale logistics market investment development and operation management business. In February and April this year, Shennong Dafeng seed Industry signed the "one-stop Grain production supply chain Management Strategic Cooperation Framework Agreement" with the people's Government of Zhangshu City of Jiangxi Province, Huangmei County people's Government of Hubei Province and Hubei Kanghong Grain, Oil and Food Co., Ltd. by building an one-stop cooperation platform for grain production and supply chain management. To provide family farms, farmers' cooperatives, grain growers and other new agricultural operators with comprehensive, professional and standardized one-stop supply chain management services, including improved varieties, agricultural materials, agricultural machinery, technical services, financial services, processing and sales services, and other forms.